executive officer of insurance giant Aetna told CNBC Tuesday that many premiums
for his company’s policies will jump dramatically under the provisions of the
Affordable Care Act, commonly referred to as Obamacare.
Aetna CEO Mark Bertolini, appearing on CNBC’s “Closing Bell” program, said his company alone will have to pass on up to $1 billion in costs to its policyholders.
“The largest factor is that the essential benefits requires a minimum of a 60 percent actuarial benefit. For most Americans, and more than half of Americans who buy individual coverage, their benefit plan is currently below 50 percent," Bertolini said. "So if you just move up to 60 percent, that’s a 20 percent increase out of the box. Secondly, there’s anywhere from 4 to 5 percent in taxes and fees associated with the Affordable Care Act. … So all those things add up.”
Bertolini also cited the current economy and the reduced rate of Medicare reimbursement as factors that need to go into the pricing structure.
"Our operating plan is not finished yet," Bertolini told CNBC.